American Airlines Soars 40% After Adding Flights
American Airlines Group (NASDAQ: AAL) on Thursday provided some of the clearest evidence yet that travel demand is beginning to recover off the bottom, and investors stampeded into the shares as a result.
American said that it plans to fly about 55% of its 2019 domestic capacity this July -- a significant boost after flying just 20% of its schedule in May -- and will reopen some of its airport lounges closed after travel demand evaporated due to the COVID-19 pandemic.
Airlines slashed flights and scrambled to cut costs as the pandemic spread globally, and shares of American and other carriers lost more than half of their value beginning in February on fears of widespread bankruptcies in the sector. American shares were hit particularly hard because the airline has the most debt among major U.S. carriers, and the company was seen as being particularly vulnerable to an extended downturn.
Source Fool.com
